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<title>Daily Smile: Tuesday, May 26, 2026</title>

"He found a tree branch. He thinks it belongs in the living room..."

Daily Smile: Tuesday, May 26, 2026

 &quot;He found a tree branch. He thinks it belongs in the living room...&quot;

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Tom Yamachika

Viewpoints

Government & Politics

The legislative bill that we have received the most questions about is 

, the bill that modifies individual tax rates. But the part that has drawn the most questions hasn’t been the tax rates, whether they be pauses, stops, hikes, or whatever else. Rather, everyone is asking about what is going to happen to the renewable energy technologies credit, which we sometimes call the solar credit although it applies to wind and other technologies.

In this week’s column, we will try to explain what changes are being made to the credit and when. The column is based on the bill as it now exists. We understand that the solar industry is extremely unhappy with the bill and is trying to have the Governor veto it (which we think is a tall order because the bill contains tons of material other than changes to the solar credit, and a veto would apply to the whole bill).

The first thing to understand is when the credit is earned. The solar credit isn’t earned when the contract is signed, when the money is paid, or when construction starts.  It’s when the equipment is “installed and placed in service.” The 

Department of Taxation’s Administrative Rules

 section 18-235-12.5-01 defines that event as when all costs have been incurred, the installation is completed, and requests for inspection have been sent to the appropriate government agencies. If the system fails an inspection and corrective work is required, however, the system is not considered installed and placed in service until the system passes the inspection.  In other words, the credit is earned when the system owner can turn it on and operate it legally.

Now, let’s go to the three significant changes to the solar credit in SB3125.

First, there is a new income cap.  If the taxpayer’s adjusted gross income is at least $175,000 for a single taxpayer or $350,000 for a married couple, then the credit is disallowed in full.  It’s unclear what happens if a corporation owns the system because 

 defines adjusted gross income only for individuals, meaning that corporations don’t have adjusted gross income. That change goes into effect for taxable years beginning after Dec. 31.

Second, there is an aggregate cap of $40 million statewide for each year from 2027 to 2030, and the credit is dead for taxable years beginning after December 31, 2029. This relates to the third change, which is that there is a new certification procedure required, effective for taxable years beginning after December 31, 2025. Taxpayers who have completed an alternative energy installation need to file some forms with the Hawaiʻi State Energy Office before March 1 of the following year. The HSEO will then notify each qualifying taxpayer of the amount of credit awarded, which may be somewhat less than what the taxpayer applied for if total statewide claims exceed the $40 million statewide cap.

This means that calendar year taxpayers who have 2026 installations will need to apply for HSEO certification. Presumably, if the installation was finished and all inspections were passed in 2026, there would not be much for HSEO to review because neither the income limit nor the statewide cap kicks in until 2027. For 2026 systems that get done toward the end of the year, there may be particular scrutiny of the inspections to see if the systems indeed passed in 2026 as opposed to 2027, when the statewide cap and the income limits become effective.

Taxpayers making plans to install alternative energy in the 2029-30 time frame also need to watch out. Although there is a $40 million aggregate limit in 2030, calendar year taxpayers finishing installations in 2030 won’t be able to get any credits at all because of the sunset date. The $40 million limit in 2030 can only be used by fiscal year taxpayers whose year starts in 2029 and ends in 2030.

Yes, this is complicated. Look for more guidance to come out of the state if the bill is enacted.

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<title>Community Voices: Changes to the solar credit</title>

SB3125 proposes a few significant changes to the credit, making the solar industry unhappy. If the bill is enacted, here's what timelines taxpayers should know.

Community Voices: Changes to the solar credit

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Michael Brestovansky

The state Department of Education is preparing to implement new cell phone policies at schools statewide.

Starting in the fall semester, all HIDOE schools will be required to meet 

 restricting the use of cell phones by students following a February decision by the state Board of Education.

At minimum, elementary school, middle school and intermediate school students will be prohibited from any cell phone use during school hours. High school students can be allowed to use cell phones during break periods, but schools can choose to implement stricter policies at their own discretion.

Teri Ushijima, HIDOE Assistant Superintendent, told Aloha State Daily that most HIDOE schools already have their own cell phone rules in place, but the new policy standardizes the department’s guidance on the matter.

“The majority of our high schools currently allows high schoolers to use [phones] during their breaks and during lunch,” Ushijima said. “There are maybe a couple that might restrict it … but I think those are schools that tend to be smaller, or they might be K-12 schools, combination schools because they want a single school-wide policy.”

 by HIDOE’s Office of Curriculum Instruction and Design last year, 77% of state high schools have a written phone policy, as do 83% of elementary schools and 97% — all but one — of middle or intermediate schools.

The most common of those policies require students to keep phones off and stowed in backpacks or in dedicated phone holders in the classroom. A majority of schools with written policies also prohibit teachers from allowing cell phone use during lessons.

Ushijima said how the policy is enforced is up to individual schools, which will have to communicate their particular implementation to students and families. Some schools may choose dedicated phone holders or other places to store phones.

A student who defies the cell phone policy will be reprimanded for a first offense. A second offense will lead to the phone being confiscated and the student’s parents notified. Further violations will also have the confiscation, and will require the parents to meet with school administration to retrieve the phone.

If parents need to reach their child during the school day, Ushijima said they should call the school’s office.

“When I went to school, before we took cell phones with us, that was the way parents communicated with their child if they needed to give them information during the school day,” Ushijima said.

Ushijima said HIDOE’s complex area superintendents will check regularly with principals about the policy’s effectiveness and will gauge whether any adjustments to the policy will be necessary for future school years.

The 2025 report by the Office of Curriculum Instruction and Design also noted that students have wildly different opinions about the cell phone policies than teachers or parents.

The majority of students who responded to a survey claimed — perhaps predictably — that cell phone use is not distracting and denied that the cell phone policies make it easier to pay attention. On the other hand, the majority of teachers believe that the policies help learning in the classroom, and the majority of families disagreed with the assertion that cell phones do not contribute to bullying in school.

Daily Smile: Tuesday, May 26, 2026

ASD Staff

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Daily Smile: Tuesday, May 26, 2026

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